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I asked this months ago and did not get any convincing answers. Ethereum is currently decentralized because of the initial POW distribution. Won't there be cen

by jyu 5y ago

I asked this months ago and did not get any convincing answers. Ethereum is currently decentralized because of the initial POW distribution. Won't there be centralized aggregators of eth so some point in the future a handful of POS nodes control a disproportionate amount of power? Is it so hard to imagine that coinbase or some other exchange accumulates enough eth to sway transaction validation? Seriously, please answer if this is wrong!

leesec 5y ago
https://vitalik.ca/general/2020/11/06/pos2020.html https://vitalik.ca/general/2020/11/06/pos2020.html >For certain kinds of 51% attacks (particularly, reverting finalized blocks), there is a built-in "slashing" mechanism in the proof of stake consensus by which a large portion of the attacker's stake (and no one else's stake) can get automatically destroyed.
- lasagnaphil 5y ago
  To be honest, even without the actual 51% attacks happening, it would really suck to live in a world where just one entity had more than half ownership of a currency used by the people.
  - SkyMarshal 5y ago
    >it would really suck to live in a world where just one entity had more than half ownership of a currency used by the people. You mean, kinda like in the real world? [1]:https://www.oxfam.org/en/press-releases/worlds-billionaires-have-more-wealth-46-billion-people https://www.oxfam.org/en/press-releases/worlds-billionaires-... [2]:https://www.oxfam.org/en/5-shocking-facts-about-extreme-global-inequality-and-how-even-it https://www.oxfam.org/en/5-shocking-facts-about-extreme-glob...
- jyu 5y ago
  Is it so hard to imagine that the US gov't does not want coinbase, gemini, etc to process payments from "terrorists" and block their transactions?
gglon 5y ago
As I understand it a one way to disincentivise centralization is that when your node loses access to the network you lose more money if at the same time many other nodes/stake do not have access to the network. So it would be profitable to have an independent server and internet access.
nullc 5y ago
> Ethereum is currently decentralized because of the initial POW distribution Ethereum was launched with a 100% 'premine' of 72M coins, printed out of thin air and handed to the founders to keep or sell as they decided. Since then another 44M have been mined, though it's not clear how much of that mining was also by insiders who influenced the work function's hardware compatibility or protected their hardware investment by controlling when/if the work function was changed or when mining was discontinued.

by jyu 5y ago

leesec 5y ago

https://vitalik.ca/general/2020/11/06/pos2020.html https://vitalik.ca/general/2020/11/06/pos2020.html >For certain kinds of 51% attacks (particularly, reverting finalized blocks), there is a built-in "slashing" mechanism in the proof of stake consensus by which a large portion of the attacker's stake (and no one else's stake) can get automatically destroyed.

lasagnaphil 5y ago
To be honest, even without the actual 51% attacks happening, it would really suck to live in a world where just one entity had more than half ownership of a currency used by the people.
- SkyMarshal 5y ago
  >it would really suck to live in a world where just one entity had more than half ownership of a currency used by the people. You mean, kinda like in the real world? [1]:https://www.oxfam.org/en/press-releases/worlds-billionaires-have-more-wealth-46-billion-people https://www.oxfam.org/en/press-releases/worlds-billionaires-... [2]:https://www.oxfam.org/en/5-shocking-facts-about-extreme-global-inequality-and-how-even-it https://www.oxfam.org/en/5-shocking-facts-about-extreme-glob...
jyu 5y ago
Is it so hard to imagine that the US gov't does not want coinbase, gemini, etc to process payments from "terrorists" and block their transactions?

gglon 5y ago

As I understand it a one way to disincentivise centralization is that when your node loses access to the network you lose more money if at the same time many other nodes/stake do not have access to the network. So it would be profitable to have an independent server and internet access.

nullc 5y ago

> Ethereum is currently decentralized because of the initial POW distribution Ethereum was launched with a 100% 'premine' of 72M coins, printed out of thin air and handed to the founders to keep or sell as they decided. Since then another 44M have been mined, though it's not clear how much of that mining was also by insiders who influenced the work function's hardware compatibility or protected their hardware investment by controlling when/if the work function was changed or when mining was discontinued.